Student accommodation investment remains strong, with transaction levels continuing at near peak levels in 2016 at £3.2 billion. Brexit has created some concerns over international student numbers, but we believe the underlying fundamentals of the sector remain strong.

Demand for rental accommodation continues as the lack of new housing means home ownership becomes unaffordable and lifestyle choices change. The private renting sector (PRS) market is growing in the UK as a result. In 2017 we expect existing entrants to increase their transactional activity which will likely bring about a period of consolidation.

The European Equity Capital Markets (ECM) overall had a difficult 2016, with the number of deals approximately 40% lower than 2015. The outlook for 2017 is marginally better. However, due to political uncertainty in Europe and the US, we expect unpredictable and short windows of opportunity for ECM activity, opening or closing quickly around positive or negative events.